The Federal Government of Nigeria has announced plans to establish a national aircraft leasing company in partnership with the African Development Bank (AfDB), in a bid to resolve long-standing financing and fleet acquisition challenges facing domestic airlines.
The initiative, unveiled by Aviation and Aerospace Development Minister Festus Keyamo in Abuja on Tuesday, is aimed at improving access to aircraft for Nigerian carriers that have struggled to expand operations due to high leasing costs and limited credit availability.
Keyamo said the proposed Nigeria Aircraft Leasing Company will serve as a Special Purpose Vehicle (SPV) designed to support airlines rather than compete with them, stressing that participation would be voluntary.
“We are not just making mouths; we have been doing our best for the past three years,” the minister said, adding that the government is focused on practical reforms to strengthen the aviation sector.
He explained that the project was originally conceived in 2015 but was delayed due to Nigeria’s compliance issues with the Cape Town Convention, an international treaty that protects the rights of aircraft lessors and financiers.
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According to him, the resolution of those compliance challenges has now restored investor confidence and improved Nigeria’s attractiveness to global leasing firms.
“With the Cape Town Convention issues now resolved, the path is clearer for us to begin this initiative,” Keyamo said.
The minister disclosed that discussions with the African Development Bank are already advanced, with a memorandum of understanding expected to be signed soon.
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He said President Bola Tinubu had directed the Ministries of Aviation, Finance, Trade and Industry, and Justice to jointly design the operational framework for the leasing company.
Under the proposed structure, government support will focus primarily on guarantees linked to aircraft repossession risk, while day-to-day operations will remain privately driven to ensure efficiency and sustainability.
Industry operators welcomed the announcement, describing it as a potential turning point for Nigeria’s aviation sector.
George Uriesi, Chief Executive Officer of Ibom Air, praised the initiative as a long-overdue reform that could significantly improve airline capacity and competitiveness.
“If you’re able to pull this over successfully, your administration will remain almost unbeaten in Nigerian aviation,” he said.
Analysts say Nigerian airlines have long faced structural challenges, including high interest rates, currency volatility and limited access to affordable leasing arrangements, which have constrained fleet expansion and route development.
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By creating a domestic leasing platform backed by a development finance institution, the government hopes to reduce reliance on expensive foreign leasing contracts and improve aircraft availability for local operators.
The plan also reflects broader efforts by Nigeria to deepen aviation sector reforms and align with international standards governing aircraft financing and repossession, which are critical to attracting global lessors.
If successfully implemented, the initiative could mark a significant shift in West Africa’s aviation financing landscape and provide a model for other African countries facing similar aircraft acquisition constraints.
